South Korea Considers Fourth Delay of Crypto Tax Until 2029
Seoul is struggling to oversee foreign platforms; under the OECD’s CARF and EU rules through DAC8, the international exchange of crypto data is already moving at different speeds.
Key Takeaways
- South Korea is considering delaying the crypto tax again, possibly until 2029.
- The government is hesitant because of problems tracking transactions on foreign platforms, especially U.S. exchanges.
- Under the current rules, a 20% tax applies to net crypto gains above 2.5 million won, with 2027 still the official start date.
South Korea is once again considering delaying the tax on crypto gains, this time until 2029. That would push back the rollout for a fourth time, while the government is still looking for a way to properly track trading on foreign platforms.
Why The Cabinet Is Hesitating
According to Newsis, the presidential office is leaning toward a delay because otherwise the tax burden would mainly fall on users of South Korean crypto exchanges. The government is said to be having trouble properly tracking transactions on U.S. platforms, while nearly half of the crypto market is in the U.S., an anonymous official told the news outlet.
That concern fits into a broader debate about international data sharing. Under the OECD’s Crypto-Asset Reporting Framework, countries are supposed to exchange crypto transaction data to make tax enforcement easier. The rollout varies by country, and the U.S. will not start sharing that data until 2029.
From 2027 To Possible 2029
The discussion marks a clear shift from July, when Deputy Prime Minister Koo Yun-cheol still said the tax would take effect in January 2027. He has since been replaced by Lee Hyung-il, who told parliament on October 6 that he first wants to gather views from lawmakers, experts, and the industry.
Under the current rules, annual net income from crypto transfers or lending is taxed at 20%, or 22% including local income tax, after an exemption of 2.5 million won, about $1,887 (€1,690). The National Tax Service still lists January 1, 2027 as the start date.
What This Means For Europe
For European readers, the key point is that CARF is being rolled out worldwide at different speeds. The European Union is already set to bring the system in through DAC8 starting on January 1, 2026, with the first data exchange in 2027. That shows how much crypto tax rules are increasingly depending on international cooperation between tax authorities.
Elsewhere too, countries are either pushing crypto rules back or tightening them. For example, France wants to put crypto-to-stablecoin swaps in the tax crosshairs, which shows how differently European countries are handling crypto taxation.
